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ICTSI profit down 13% but revenues rise 37%

03/10/2009

Group profit of international port operator International Container Terminal Services Inc. (ICTSI) last year fell 13 percent to P2.86 billion from P3.29 billion a year ago due to a scheduled change in accounting system and weaker currencies in relation to the US dollar.

ICTSI incurred a profit fall despite full-year revenue from port operations reaching P20.6 billion, an increase of 37 percent from the P15 billion profit it reported last year. Earnings before interest, taxes, depreciation and amortization (Ebitda) was at P8.74 billion, up 46 percent from P5.99 billion in 2007, it added.

The lower net income attributable to equity holders was mainly due to the restatement of prior year results brought about by the adoption of International Financial Reporting Interpretations Committee (IFRIC) 12 and the weakening of currencies in the countries where ICTSI’s ports are located relative to the US dollar, particularly in the last quarter of the year.

Both the 2007 and 2008 results reflect the adoption on Jan. 1, 2008 and restatement of 2007 of IFRIC Interpretation 12 — accounting for service concession agreements and include an associated net foreign exchange gain of P553 million in 2007 and a net foreign exchange loss of P337 million in 2008 arising from the restatement of predominantly US dollar-denominated concession rights payable under IFRIC 12 to local currencies.

Excluding the impact of IFRIC 12, net income attributable to equity holders would have been P2.78 billion in 2007 and P2.93 billion in 2008, an increase of six percent.

“In spite of the weak global economy in much of 2008, ICTSI has delivered excellent full year results. However, we do not expect to be immune to the deteriorating economic situation and the resulting pronounced downturn in global trade, and thus we expect 2009 to be a more difficult year,” ICTSI president Enrique Razon Jr. said.